Define Shipping Networks and Customer Locations for Internal Requisitions

Internal Requisitions provide the mechanism for requesting and transferring material from inventory to other inventory or expense locations. When Purchasing, Order Entry / Shipping, and Inventory are installed, they combine to give you a flexible solution for your inter-organization and intra-organization requests. 

Internal Requisitions provide a flexible solution to your inventory requisitioning needs. You can eliminate user intervention when you do not need it, such as when you are loading internal requisitions into Order Entry / Shipping or placing demand. The following sections describe the entire business and information flow for internal requisitions, and identifies opportunities for you to simplify processing.

Shipping Networks

Inventory provides the features you need to define your inter-organization shipping network. For transfers between two organizations, you can specify whether to use intransit or direct shipments. You can also require internal orders for transfers between specific organizations. Inter-organization shipping network information describes the relationships and accounting information that exists between a shipping (from) organization that ships inventory to a destination (to) organization.

To define shipping network:

1. Navigate to the Shipping Networks window.

2. Determine if the organization displayed is the To Organization, From Organization, or the From or To Organization.

Note: If your function security allows multiple organization access, you can enter any organization. Otherwise, the Organization field is display only.

3. To define a new shipping network for the current organization choose New Record from the Edit menu. To enter a new record in a single-row window choose the New button.

To find existing shipping network information for the current organization choose Find.

4. Select the Main alternative region.

5. Enter the shipping or From organization.

6. Enter the destination or To organization.

7. Enter the transfer type:

• Direct: Inter-organization transfers move inventory directly from the shipping organization to the destination organization.
• Intransit: Inter-organization transfers move inventory to intransit inventory first. You can track this inventory until it arrives at the destination organization.

8. If you selected Intransit in the Transfer Type field, select the FOB terms:

• Receipt: The shipping organization owns the shipment until the destination organization receives it.
• Shipment: The destination organization owns the shipment when the from organization ships it (and while the shipment is in transit).

9. If you selected Intransit in the Transfer Type field, select a receipt routing option:Standard: Receive this item first, then deliver without inspection.Direct: At receipt, deliver this item directly to its location.Inspection: Receive this item first, inspect it, then deliver.

10. Indicate whether an internal order is required for each transfer.11. Save your work.

To define transfer charge information:

1. Select the Transfer, Distance alternative region.

2. Select the inter-organization transfer charge type for calculating transfer charges:

• None: Do not add transfer charges.
• Predefined Percent: Automatically add a predefined percent of the transaction value.
• Requested Value: Enter a discrete value to add.
• Requested Percent: Enter a discrete percentage of the transfer value to add.

The default value is the value you defined in the Organization Parameters window for the shipping organization. 

3. If you selected Predefined Percent in the Transfer Charge Type field, enter the percentage value to add to a material transfer. For example, a value of 10 equals a transaction value of 10%.The default value is the value you defined in the Organization Parameters window for the shipping organization. 

4. Optionally, you can define the following:
Enter the unit of measure for the distance from the shipping organization to the destination organization.
Enter the distance value (in the unit of measure) from the shipping organization to the destination organization.

To define account information:

1. Select the Primary Accounts alternative region.

2. Enter the general ledger transfer credit account used to collect transfer charges for the shipping organization. The default value is the value you defined in the Organization Parameters window for the shipping organization. 

3. Enter the general ledger account used to collect the purchase price variance for inter-organization receipts into standard cost organizations. You must enter an account if your receiving organization is using standard costing.

To enter additional account information:

1. Select the Secondary Accounts alternative region.
Note: The default values for the following fields are the values you defined in the Organization Parameters window for the shipping and destination organizations. 

2. Enter the general ledger receivables account used as an inter-organization clearing account for the shipping organization. The inter-organization receivable account for the shipping organization should equal the inter-organization payables account for the receiving organization.

3. Enter the general ledger payables account used as an inter-organization clearing account for the receiving organization. The inter-organization receivable account for the shipping organization should equal the inter-organization payables account for the receiving organization.

To enter intransit account information:

1. Select the Intransit Account alternative region.

2. Enter the general ledger account used to hold the intransit inventory value.

To enter intransit lead time for shipping methods:

1. Select Shipping Methods on the Special menu to open the Inter-org Shipping Methods window.

2. Enter the shipping method for which you want to associate an intransit lead time for the displayed from and to organizations. 

3. Enter the intransit lead time in days.

4. Save your work.